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Basic Question 7 of 8

The two most critical elements of an investment objective are ______.

A. capital appreciation and total return
B. risk tolerance and return objective
C. tax concerns and legal (regulatory) factors

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Craig Baugh

Craig Baugh

Learning Outcome Statements

describe risk and return objectives and how they maybe developed for a client

explain the difference between the willingness and the ability (capacity) to take risk in analyzing an investor's financial risk tolerance

CFA® 2025 Level I Curriculum, Volume 6, Module 4.